By Francis Akinnodi

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The capacity of Small and Medium Scale Enterprises (SMEs), to perform its role as the engine propelling the growth in an economy has been hampered, by challenges such as, lack of access to finance, modern technology and market among others, an expert has said.
Chairman, Nigeria Association of Small Scale Industrialists (NASSI), Ondo State chapter, Greatsheyi Akintunde made this known while speaking with The Hope In Akure yesterday.
He said the Central Bank of Nigeria (CBN) defines SMEs as an asset based business with a number of staff employed. The criteria is an asset of based between N4 million and N500 million with a staff strength of between 10 and 100 employees.
“lt is a catalysts for economic growth and national development; if their impact in developed and developing countries alike is anything to go by, the SMEs sector in Nigeria accounts for most jobs and contributes nearly half of the country’s GDP in nominal terms.
“There are over 37 million MSMES (Micro, small and medium Scale Enterprise) in Nigeria and this number contributes almost 50 percent of GDP in nominal terms and accounts for 84 percent of all Nigerian jobs.”, he said.
He explained that SMEs serves as a catalyst for economic growth in many countries, because they have more flexible production opportunities compared with large enterprises, adapting to the changes in demand in a short time and meet conditions for competition quickly.
“However, they contribute to national income, employment, productivity and entrepreneurial training.
“Most of the conglomerates, corporations and multinationals of today started as SME’S or mere business ideas that were nurtured before they blossomed into the big deals they have become today,” he said.
Akintunde noted that access to funds has been labeled as the most challenging obstacle in enhancing SMEs’ productivity and sustainability.
He urged government at all levels to create an enabling environment as well as favourable policies that would support the growth of SMEs, adding that business owners must take the responsibility to acquire the right capacity to ensure their business sustainability.
The industrialist explained the need for proper stewardship in the business, as the information generated is crucial for potential investors, lenders, tax authorities and so on, adding that “When you open a business, you are a steward to yourself and to many other people.”, he explained.